How to deregister from VAT in Poland? Is it a complicated process?

Based on the VAT provisions, if a taxpayer stops to perform taxable activities, he is obliged to inform the tax office about this fact within 7 days from the last day of business activity. Deregistration procedure takes couple of days.

VAT deregistration process should be performed carefully (when the taxpayer is sure that no additional supplies will be made, no purchase invoices that should be included in VAT return may be received).

Before deregistration is undertaken, it is important to apply for VAT refund and / or transferring funds from VAT account to the current account (if applicable). The taxpayer should maintain its Polish bank account until VAT refund is received (funds cannot be transferred to foreign account or account which does not belong to the taxpayer). Taxpayer may decide to refrain from VAT refund (e.g. in case VAT amount is not significant).

To accomplish the deregistration process, it is necessary to:

  • submit VAT return and ECSL for the last settlement period,
  • submit VAT deregistration form (on your own or through the proxy).

In some cases the head of the tax office may on his own remove a taxpayer from the VAT register, i.e.:

  • if, despite documented attempts, it is not possible to contact the taxpayer or their representative (deregistration without notification),
  • when a taxpayer submits nil VAT reports for 6 months (2 quarters) in a row (deregistration with notification).

Based on our practice, if VAT registration is still needed, tax authorities restore VAT registration after they obtain reliable explanation of temporary lack of business activity or lack of response.